This is a monthly update on Dubai Property Market Trends for February 2017 as observed by various media, real estate professionals and market insiders.

General Trends

On February 15th, the Dubai Land Department stated that the total value of real estate transactions in the first 45 days of the year had totaled AED 42 billion exceeding the pace of transaction values of 2016.

Various reports published in media this month indicate a continued softening of rents in several areas as well as highlighting willingness of owners to provide flexible no. of cheques. At Lookup.ae, we also agree with the prevailing sentiment that continuous supply will increase rental affordability in many areas of Dubai, but especially the suburban developments along Mohammad bin Zayed Road and Al Qudra Road.

A report by REIDIN / Global Capital Partners has pointed to the strong dollar as a potential demand weakness for the Dubai property market. The report does state that this should be a short-term effect.

Emaar Properties said net profit increased 56% in Q4 2016 Y/Y. While Emaar was able to report a 28 per cent total net profit increase for 2016 at Dh5.23bn, Damac said that its net profit for the full year had slumped by 18.1 per cent to Dh3.69bn.

According to a report by Valustrat, current average prices across Dubai are still 13.7% on average below peak achieved in 2014.

Off-Plan Trends

Emaar have launched Golf Views – the first apartment development in Emaar South (a master-community located close to the new airport and Expo 2020 site). These apartments were launched at prices ranging from AED 800 – 1,050 per sq. ft. and overlook an 18 hole golf-course.

New project launches have slowed significantly with major developers focused on selling existing projects.

Dubai Properties have continued a promotion offering a 2% discount on most of their major communities.

Mag Group have introduced a smaller studio type within their Mag 5 Boulevard development with prices of AED 330,000 which has proved to be very attractive for investors.

Community to watch: Downtowns Burj Dubai

In March 2017, we expect the official opening of the Address BLVD in Downtown Dubai. The real estate boom that started in 2012 and cooled in 2014 really begun with the launch of Address BLVD in mid-2012. The BLVD was the first major project announced by Emaar in Downtown since the market crisis of 2009.

Since the launch of Address BLVD, Emaar have gone onto launch many new developments in Downtown and the delivery of this project marks the first major supply release in the community for nearly 4 years.

The handover of Address BLVD may just very well kick up transaction activity in the community again. Downtown has always attracted investors from all over the world and with current prices about 15-17% below peak, we believe Downtown is still under-valued as its real estate should be compared on an International level.

Economic News

Dubai's non-oil private sector economic activity signaled strong growth in January 2017 according to ENBD Economy Tracker. Business activity, according to the index, expanded at the fastest pace since March 2015.

Important

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